[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.6420-3]

[Page 209]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
    Subpart O_Refunds and Other Administrative Provisions of Special 
            Application to Retailers and Manufacturers Taxes
 
Sec. 48.6420-3  Exempt sales; other payments or refunds available.

    (a) Exempt sales. Credits or payments are allowable only for 
gasoline that was sold by the producer or importer in a transaction that 
was subject to tax under section 4081. No credit or payment shall be 
allowed or made under Sec. 48.6420-1 with respect to gasoline which was 
exempt from the tax imposed by section 4081. For example, a State or 
local government may not file a claim with respect to any gasoline which 
it purchased tax free from the producer, even though the State or local 
government used the gasoline on a farm for farming purposes. Similarly, 
payment may not be made with respect to gasoline purchased by a State 
tax free for its exclusive use, as provided in section 4221, which is 
used on a State prison farm for farming purposes.
    (b) Other payments or refunds available. Any amount which, without 
regard to the second sentence of section 6420(d) and this paragraph (b), 
would be allowable as a credit or payable to any person under Sec. 
48.6420-1 with respect to any gasoline is reduced by any other amount 
which is allowable as a credit or payable under section 6420, or is 
refundable under any other provision of the Code, to any person with 
respect to the same gasoline. Thus, a person who is the ultimate 
purchaser of gasoline may not file a claim for credit or payment with 
respect to that gasoline if another person is entitled to claim a 
payment, credit, or refund with respect to the same gasoline. For 
example, a State or local government may not file a claim for payment if 
it has executed, or intends to execute, a written consent to enable the 
producer to claim a credit or refund for the tax that was paid. See, for 
example, Sec. Sec. 48.6416(a)-3(b)(2), 48.6416(b)(2)-2(d), and 
48.6416(b)(2)-3(b)(1).

[T.D. 8043, 50 FR 32036, Aug. 8, 1985]